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According to a recent report, requests to delay mortgage payments jump nearly 2,000% as borrowers seek relief during coronavirus outbreak In addition, the Mortgage Bankers Association recently released a study, saying that a significant number of homeowners nationwide are behind a minimum of one payment on their mortgage.  

 

Folks, this reminds may remind you of 2008 The worst part of this scenario is that history tells us that 7 out of 10 homeowners will simply “walk away” from their mortgage, allowing the bank to simply foreclose on their home, without ever consulting with a qualified Dallas short sale agent to learn their options.

 

Stop Dallas, Texas Foreclosure And Stay In Your Home. Here are some options you have as a homeowner in DFW, TX.

 

 

Sell Your Home

 

- If you have equity, you can sell your home and cure the foreclosure

- In Dallas, Texas, approximately one-third of Dallas homeowners are fortunate enough to have equity in their homes.

 

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Rent Your Home

- Can your property bring enough rental income to cover your mortgage payment? If so, this may be a viable option.

- Unfortunately, in today’s Dallas market, very few homeowners are in a position that makes this possible.

- You also need to factor in insurance, taxes, maintenance, and the headaches of being a landlord.

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Reinstatement

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If you have the funds to repay missed mortgage payments, as well as any associated fees and late charges, a reinstatement can allow you to bring your loan current and avoid foreclosure. A reinstatement typically requires you to pay a lump sum by a specific date to become current.

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A reinstatement may make sense if you:

• Are recovering from a short-term financial hardship.

• Are behind on your mortgage and have received a notice of default.

• Can demonstrate to your lender that you can repay your debts and afford your monthly mortgage payment.

• Can be done up to day of foreclosure auction

 

Tip: Homeowner must be able to pay all the payments and late fees due and your mortgage will remain the same.

 

Forbearance  

 

If you're facing a short-term financial hardship and need temporary assistance with your mortgage, your lender may offer you a "forbearance." With this option, your lender temporarily reduces or suspends your mortgage payments for up to 12 months while you get back on your feet. Interest continues to accrue and you are responsible to pay it

 The lender agrees not to foreclose during that time. Please remember that ‘Forbearance is not forgiveness’

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As of March 2020, to  help homeowners  who have lost income or their jobs because of the coronavirus outbreak, mortgage giants Fannie Mae and Freddie Mac both have ordered lenders to be more flexible with borrowers, reducing or suspending payments for up to 12 months. That action alone covers half of the country’s home loans.

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Things to know:
 

- Requires lender approval

- You may be allowed to make your back payments over time

- Normally does not fully reinstate mortgage until plan is completed. If a homeowner misses just one payment, they can end up in the same stage of the foreclosure process they were in previously. This is a major problem with this particular option.

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Deferment

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Mortgage deferment and mortgage forbearance allow borrowers to temporarily stop making their monthly payments, but they differ in what happens afterwards. At the end of a forbearance period, the amount of payments missed are due in a lump sum.  At the point, though, lenders might work with borrowers to structure a payment plan.

 

On the other hand, deferment allows borrowers to repay the money over time or add it to the end of their loan period.

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Private mortgage lender relief programs

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If your mortgage isn’t owned by Fannie Mae or Freddie Mac, there still might be some relief available.

Keep in mind that your bank or other initial mortgage lender may have sold off your loan at some point after it was originated. So just because you took out a mortgage through one company doesn’t mean it currently owns your loan. Your monthly mortgage statement will show you who to contact.

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Below is a list of private mortgage lenders and info on assistance they’re offering, along with eligibility requirements. We’ll continue to update this list as we gather new information.

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It’s important to note that some states and local governments have enacted moratoriums on evictions and foreclosures, which would apply even if your specific lender or servicer isn’t offering relief measures. Check your state and local government websites to see if a moratorium has been enacted where you live.

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Ally Bank

What it’s offering: Ally Bank’s mortgage service support is now available every day to help customers who are facing difficulty. The bank has suspended foreclosure and eviction proceedings through July 30 and is offering forbearance plans of up to 120 days with no late fees — though interest will continue to accrue.

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Eligibility: You’ll need to contact Ally to determine the assistance you’re eligible for. Support by phone is available, but the bank recommends you apply for help online to avoid long wait times.

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Bank of America

What it’s offering: Bank of America has a COVID-19 resource page that directs customers to the right support line to request help. If you’re a Bank of America mortgage customer, you can ask to delay your monthly payments and add the amount you delay to the end of your loan. No negative information is reported to credit bureaus. Bank of America has also paused foreclosure sales, evictions and repossessions.

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Eligibility: While the pause on foreclosure sales, evictions and repossessions applies to all borrowers, Bank of America doesn’t give specifics on how to qualify for other relief. Call 1-800-669-6607 for more information.

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Chase

What it’s offering: Chase recommends that you keep paying your mortgage if you’re able to do so — but the lender says customers should reach out if they need help by calling 1-800-848-9380, or by logging into their online accounts and sending a secure message.

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Eligibility: The lender doesn’t specify what relief might be available or how to qualify. It does say that members of the military who have been activated to respond to the coronavirus situation should call Chase’s military services hotline at 1-877-469-0110 to see what additional benefits might be available.

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Citi

What it’s offering: Citi is offering a slate of mortgage assistance programs through its servicing company, Cenlar FSB. The bank does not specify what relief is being offered.

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Eligibility: If you’re a Citi mortgage customer, contact Cenlar FSB at 1-855-839-6253 to see if you’re eligible for assistance.

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Fifth Third Bank

What it’s offering: Fifth-Third Bank is offering 180-day forbearance plans. And while interest will still accrue during forbearance, there won’t be any late fees. The bank has also suspended foreclosure activity for 60 days.

Eligibility: You’ll need to contact Fifth Third to see if you’re eligible for assistance. You can do so by calling the bank at 1-866-601-6391 or sending a secure message through the bank’s online portal.

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Flagstar Bank

What it’s offering: Flagstar Bank is offering automatic six-month forbearance plans for mortgage customers impacted by COVID-19. (Though take note that the bank doesn’t say whether interest will accrue during that time.) The bank is also waiving late fees for certain customers and has suspended foreclosures and evictions through May 31.

Eligibility: You can request a forbearance with Flagstar online.

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HSBC

What it’s offering: HSBC says it’s offering assistance to mortgage customers impacted by COVID-19, but doesn’t specify what relief might be available.

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Eligibility: You’ll need to call the bank at 1-855-806-4657 to discuss your situation and eligibility requirements.

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LoanDepot

What it’s offering: LoanDepot is offering assistance if you’ve become ill or have been financially affected by office or school closures, quarantine, job loss or reduction in work hours due to the coronavirus pandemic. The lender does not specify what relief is available.

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Eligibility: If your loan is serviced by LoanDepot, you’ll need to call 1-877-420-4526 to see if you’re eligible for assistance.

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PNC

What it’s offering: On its site, PNC claims it’s considering waiving or refunding some mortgage fees right now for customers who are having trouble making payments. The lender also calls out other programs that may be available for mortgage customers facing financial hardship right now, including postponing payments.

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Eligibility: While it doesn’t list specific eligibility requirements, PNC has a website set up to help you if you’re facing financial difficulty. It includes phone numbers to call and a hardship assistance application to fill out.

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Quicken Loans

What it’s offering: Quicken Loans is offering forbearance up to three months for customers experiencing job loss, illness or lost work opportunities while caring for a family member as a result of the coronavirus pandemic. At the end of the forbearance period, you’ll be able to pay with a lump sum, repayment plan or loan modification that finances the deferred amount — or you can request to extend the forbearance.

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Eligibility: You can apply for assistance through your online Rocket Mortgage account.

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TD Bank

What it’s offering: TD Bank is offering to defer payments and waive late fees for customers affected by the coronavirus.

Eligibility: You’ll need to call 1-800-742-2651 to see if you’re eligible.

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Truist

What it’s offering: Truist is offering forbearance plans of 90 days or more for mortgage customers of both its predecessor banks, BB&T and SunTrust. If that isn’t enough to help, Truist may consider you for loan modifications.

Eligibility: You’ll need to call the bank to see what you’re eligible for. Legacy SunTrust customers should call 1-800-443-1032 and legacy BB&T customers should call 1-800-827-3722.

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U.S. Bank

What it’s offering: U.S. Bank is offering forbearance plans of up to 180 days if you’re facing financial hardship due to the pandemic. If your financial problems last longer than that, the bank is pledging to work with you on an extended assistance plan, repayment plan or loan modification.

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Eligibility: To see if you’re eligible, you’ll need to call 1-800-365-7900. When you do, U.S. Bank says to be prepared with …

• An explanation of your situation

• A list of your household expenses

• Proof of your household income
   

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Wells Fargo

What it’s offering: Wells Fargo is offering to suspend mortgage payments for three months for customers hit by financial difficulties related to COVID-19. Once the suspension period is over, Wells Fargo will work with you to see if you need a longer suspension or loan modification, or if you can move the payments to the end of the loan.

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Eligibility: To see if you’re eligible for assistance, sign into your online banking account and send a note through the secure message center. Wells Fargo says a bank representative will get back to you within three to five days.

 

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Repayment Plan  ​

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What is It?  If you are behind on your mortgage and have missed some payments, it allows you to bring your mortgage current over a short period of time by paying a little more than your original monthly mortgage payment. With this option, you spread out your past due amount—added on to your current mortgage payments—over several months in order to bring your mortgage current. A repayment plan must be longer than one month, but no more than 12 months.

 

Who is it best for?

 

• If you are able to afford your regular monthly payment plus a little more for a period of time.

• You are ineligible or don’t want to refinance

• You are facing a short-term hardship

• You are a couple (or several months) behind on your mortgage payments

• You can now afford your monthly mortgage payment

 

What are the benefits?

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• Bring your mortgage current and resolve your delinquency

• Catch up on your past due payments over an extended period of time

• Less damaging to your credit score than a foreclosure

• Stay in your home and avoid foreclosure

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What documents do I need? Repayment plans must be in writing and your Servicer must send you a copy. You may receive an offer for a repayment plan after a conversation with your Servicer or submission of the Mortgage Assistance Application.

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Refinance

 

If your mortgage is “above water,” (meaning you have equity in your house) you may be able to refinance your mortgage, receiving lower monthly payments.  Typically, a refinanced mortgage will have a lower interest rate than your existing rate; or you may replace an adjustable rate with a fixed rate which may be more affordable. 

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- Typically a short-term solution, since your payment always goes up.

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Who is it best for? If you are current on your mortgage payments but would benefit from a reduced payment in the future.

 

What documents do I need? Check with your Servicer to determine what you need to do to apply.

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Next Steps: Check with your local Dallas mortgage broker… or contact us and we can connect you with a reputable one. This is rarely a viable solution in the markets where home values have dropped significantly, causing lower appraised values.

 

Mortgage Modification

 

- Requires lender cooperation

- Modifies loan and often reduces payment

- You will have to qualify with financial information most of the time (full doc loan).

- Government programs are available (visit makinghomeaffordable.com)

- You must have verifiable means of income

- You should be certain you can afford the modified mortgage payment

- You can pursue a mortgage modification and prepare for a short sale simultaneously

- Currently, we are seeing less than 10% of our clients qualify for a loan modification, even under the Making Home Affordable Program.

 

Bankruptcy

 

- Will stall a foreclosure and if payments are lowered to where property can be made affordable, it may save your home.

- Very difficult to sell a home once in the bankruptcy process

- Will only stall a foreclosure- will not eliminate the mortgage

 

Service Members Civil Relief Act (SCRA)

 

As a service member, if you're finding it difficult to make timely mortgage payments, there are also several options that may be available through the SCRA to help you, such as:

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• Forbearance and Relief from Foreclosure: If you are eligible, your servicer may not initiate or resume foreclosure proceedings during your period of military service and for 12 months after you are released from military service.

• Interest Rate Relief: If you are eligible, your interest rate on eligible mortgages will be capped at 6% per year during your period of active duty and for one year after active duty ends.

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To be eligible for the SCRA, you must be named as the borrower or co-borrower on the mortgage and have purchased your home before your period of military service.  If you want to refinance your mortgage, we recommend that you discuss refinancing with a legal advisor to ensure there are no impacts to your SCRA protections.

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If you are not eligible for the SCRA, Freddie Mac has extended mortgage relief benefits to service members and their dependents as part of our commitment to you and your family.  This includes policies that:

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• prohibit your servicer from initiating or resuming foreclosure proceedings during your military service and for 12 months after your service ends, and

• ensure your servicer will make every effort to help you with your mortgage.

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It’s important to note that many states have passed laws that extend benefits to service members beyond the SCRA. These laws may also provide mortgage payment reduction, foreclosure relief and eviction forbearance.

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- Provides temporary relief to military personnel

- Must show mortgage was entered into prior to beginning active duty

- Must still be owned by military member

- Must show that service materially affected the ability to pay the mortgage

 

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Deed-In-Lieu Of Foreclosure

What is It? A voluntary transfer of the property title to bank in exchange for a discharge of the mortgage debt. The homeowner signs the deed over to the bank rather than go through the foreclosure process. This is typically a last resort when other options have failed or will not work. Your Servicer may offer you an incentive to help with your transition to more affordable housing. What is It? This option allows you avoid foreclosure and make a graceful exit from your home when all other options have been exhausted. What is It? You must submit a Mortgage Assistance Application along with documents requested by your Servicer (depending on the nature of your hardship).

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- Also known as a “Friendly Foreclosure”- This process still may be reported as a foreclosure on your credit report

- This scenario typically only works with one mortgage (2nd mortgages will not participate).

 

Short Sale

What is it?  A homeowner is “short” when he/she owes an amount on his her property that, when combined with closing costs and commissions, is higher than the current market value. A negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance owed at the close of escrow. A buyer closes on the property and the property is “sold short”

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Who is it best for? You can no longer afford your mortgage payment, or you need to relocate and all other options to remain in your home have been exhausted.

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Learn more about how we can help you with the short sale of your home in Dallas, TX

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